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The Zacks Analyst Blog Highlights: Starbucks, AT&T, Chipotle, Visa And Paypal

Published 07/21/2016, 09:30 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – July 22, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Starbucks (NASDAQ:SBUX) (SBUX), AT&T (NYSE:T) (T), Chipotle (CMG), Visa (V) and Paypal ( PYPL).

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Here are highlights from Thursday’s Analyst Blog:

A Slew of New Earnings Reports: SBUX, T, CMG, V & PYPL

Lots and lots of companies reported quarterly earnings following the closing bell Thursday: Starbucks (SBUX) , AT&T ( T) , Chipotle (CMG) , Visa (V) and Paypal ( PYPL) have all hit the tape in the post market. Rather than waste time pontificating what these companies and their various industries may have in common (or not), let's simply look at the numbers.


Starbucks met earnings estimates of 49 cents in the company's fiscal Q3, but revenues fell to $5.24 billion from the $5.35 billion expected in the Zacks consensus estimate. Global year-over-year growth in same-store sales were up 4%, whereas expectations were for 5.7% growth. Starbucks performance in China improved to 7%. The Zacks ESP was correct at 0% surprise. SBUX shares fell 4.25% immediately on the news. Read more on Starbucks' Q3 earnings results here.

AT&T also met bottom-line projections of 72 cents per share, but missed on the top line: $40.52 billion in revenues missed our consensus of $40.66 billion. The telecom giant claimed 1.4 million new wireless net adds, and post-paid churn reached 0.97%. Though the stock is up more than 23% year-to-date, the after-market sell-off did not occur in a big way; shares fell just 0.2% upon the company's Q2 earnings report.

Chipotle is trading up in the after-market after missing estimates on both top and bottom lines. (You don't see that too often, do you?) Comp store sales were also worse than expected at -23.6% (-20% had been the consensus). Chipotle did open 58 new stores in the quarter, and its Chiptopia loyalty plan seems to have gained some traction, following the company's problematic e.coli issues earlier this year. Shares are up 2% on the earnings news, but are still down nearly 35% from this time a year ago.

Visa notched modest beats on both top and bottom lines, marking the credit-card giant's fifth straight positive earnings surprise. Visa also announced a new $5 billion share buyback, which has helped boost after-market trading a bit. The company also announced -- following a long, drawn-out process -- a partnership deal reached with Paypal, which also reported earnings after the bell. Paypal met EPS estimates of 30 cents while coming out on top of revenue estimates of $2.59 billion to $2.65 billion. More details of the partnership are expected in both companies' conference calls.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



STARBUCKS CORP (SBUX): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

CHIPOTLE MEXICN (CMG): Free Stock Analysis Report

VISA INC-A (V): Free Stock Analysis Report

PAYPAL HOLDINGS (PYPL): Free Stock Analysis Report

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